New Orleans-based offshore supply company Harvey Gulf International Marine announced Monday that it has completed its financial restructuring and emerged from Chapter 11 bankruptcy after completing a court-approved Plan of Reorganization.
Under the reorganization, Harvey Gulf has shed approximately $1 billion in debt and emerges with a “dramatically de-leveraged balance sheet”, the company said. The company has also its commitments to its trade vendors, paying all unsecured claims in full, it said.
The emergence comes 77 days following Harvey Gulf’s prepackaged filing back in March.
Founded in 1955 by Captain Numa J. Guidry, Harvey Gulf International Marine is one of the largest privately-owned and operated marine transportation companies in the U.S. Gulf of Mexico. The company specializes in deepwater operations with more than 50 offshore support vessels comprising platform supply vessels, fast supply vessels and multi-purpose support vessels, including the first LNG-powered offshore supply vessels and largest Jones Act vessels in the Gulf of Mexico.
Shane Guidry, who has been at the helm of Harvey Gulf since 1997, will continue in the same role under a new 5-year employment contract.
“Mr. Guidry’s leadership of Harvey Gulf through the most significant downturn in the offshore services industry in more than 30 years has been exemplary, producing 58% average EBITDA margins over the past three years, peaking at 61%. The retention of his services and the rest of his team was a key tenet of the restructuring transactions,” Harvey Gulf said in a press release.
Harvey Gulf also indicated that it intends to expand and “provide its exceptional safety and operational expertise to its customers globally” through mergers or acquisitions.
“The Chapter 11 restructuring process is extremely complicated, and the fact that Harvey Gulf emerged so quickly, while shedding a billion dollars of debt and adding over 40 new customers reflects the dedication, hard work, and tenacity of the entire Harvey Gulf team,” Mr. Guidry commented. “Importantly, Harvey Gulf’s performance will continue well into the future, and the competition simply isn’t in a position to capitalize on the industry’s shift to cleaner energy. Nor are they capable, either financially or from the organizational leadership standpoint, of re-designing their fleets to compete and perform in this new age.”
The filing submitted back in March included plans to convert more than $1 billion in debt into equity that would be given to lenders when the company exited bankruptcy. Other creditors, such as suppliers, would also be paid in full.
In 2008, Mr. Guidry acquired Harvey Gulf from the Guidry family along with New York-based private equity firm The Jordan Company.
“I want to thank my lenders, who are now my new partners, and Harvey Gulf’s legal and financial advisors, Vinson & Elkins, LLP, Blank Rome, LLP, and Stephens Inc., as well as our lenders’ attorneys and advisors, led by Davis Polk & Wardwell, LLP and PJT Partners, LP, for all the long hours we’ve all worked together to position Harvey to be able to deliver another 63 years of safe and efficient, family run vessel services to all our very appreciated customers and partners in safety. Lastly, I’d like to thank The Jordan Company, which has been a tremendous partner for us over the last 10 years and supportive of this company through any and all challenges. We are glad that TJC will maintain a significant stake in the company going forward,” added Mr. Guidry.